ATLANTIC CITY, N.J.-- Rising waters put most of Atlantic City under water Monday as the approach of Hurricane Sandy flooded towns up and down the New Jersey shore, knocked out power to thousands and left some people stranded in water-surrounded homes, forcing rescues. Emergency officials said they expected conditions to get much worse at evening high tide.

"The city's basically flooded," said Willie Glass, the city's public safety director. "Most of the city is under water."

Fire officials in neighboring Pleasantville reported two rescues and said more were under way as residents who stayed put sought to escape flood-encircled homes.

"It's going to be a slog through the history books but we're doing OK so far," Glass said.

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Atlantic City and its casinos were ordered evacuated on Sunday. The city's historic boardwalk remained intact despite the rising floodwaters, though an old section at the north end broke up and washed away.

"It looks like it's going to be worse than the storm of '62, which was monumental," Glass said. "Saving lives and making sure everyone is safe is our priority."

State Emergency Management spokeswoman Mary Goepfert said about 115,000 residents to evacuate the state's barrier islands but it was not known how many heeded the warning. She said more than 2,200 people were in shelters statewide.

The Garden State Parkway was closed in both directions south of the Atlantic City Expressway because of flooding.

More than 8,000 people were without power across the state as officials braced for a storm surge that was expected to cause record-breaking flooding.

The streets of Atlantic City were mainly deserted.

Ron Skinner, a Harrah's employee who was heading from the boardwalk to the beach, said he was unfazed.

"It is what it is," he said. "I don't worry much."

Tom Foley, Atlantic City's director of emergency management, said officials were sweeping the city's low-lying areas, looking for people who were still in their homes. Two shelters are currently occupied, he said.

"We're anticipating more people coming in as the tide rises," he said.

While the plywood was tacked onto casino windows, and sandbags sat at the bottoms of doors, the Boardwalk looked like it could come to life at any minute. Neon signs still flashed; lamps were lit and a string of Christmas lights extending from a casino to lamps remained lit. Bally's even kept its outdoor sound system on; "What You Need" by INXS blared on the boardwalk along with the howl of the wind.

A check-cashing store was boarded up; a pizza place sat, rain hitting the white facade of the only building on the block. Rain dripped down the elephants in front of the Trump Taj Mahal Casino Resort, and a piece of sign hung from a billboard, swaying in the wind.

A traffic light near the Atlantic City Expressway dangled precariously, turning 360 degrees before giving out. Water still spraying up from a fountain was blown horizontally. On a street where an Associated Press reporter parked, water rose about four inches in a half hour.

President Barack Obama signed an emergency declaration for New Jersey on Sunday, allowing the state to request federal funding and other assistance for action taken in advance of the storm.

Christie, who famously urged New Jersey residents last year to "get the hell off the beach" as Hurricane Irene approached, urged residents of the state's narrow barrier islands to move to higher ground. He predicted the storm would come ashore at Atlantic City around 2 a.m. Tuesday.

"Don't be stupid. Get out," he warned.

More than half of New Jersey's 590 school districts decided to close for Monday, and 247 districts have decided to remain shut Tuesday, as well.

Sandy was just one component of a massive storm predicted to come together over the eastern third of the U.S., threatening damaging wind, possible record-setting flooding and prolonged power outages. At 5 a.m. Monday, the National Hurricane Center indicated that Sandy had strengthened a bit since last check, with top sustained winds of 85 mph.

Atlantic City's 12 casinos closed for only the fourth time in the 34-year history of legalized gambling here. State parks also shut down.

Residents of northern New Jersey river communities braced for another round of the flooding that has become commonplace for them. Pompton Lakes has been hit by flooding several times in the last decade, most notably last year after the remnants of Hurricane Irene swept through the area and left dozens of businesses and homes severely damaged.

Some in the town were already putting belongings out near the curb, in advance of the storm.

"People are worst-case-scenario-ing it," said Kevin Gogots, who has lived in the town since the early '80s. "They're figuring, divide and conquer: They'll take the stuff they want to save and put the rest out. Of course, if the street floods again we'll just have things floating around."